10+1 trends of Russian beer market 2015-2017Despite of the moderately negative prognoses for 2017, the beer market can be stabilized soon. Yet the years of the negative dynamics have resulted in marketing being limited just to “optimization” and the art of balancing between price and volumes. Bigger supermarkets share means stronger trade marketing. These processes are connected to the majority of the described trends. At the same time, the federal brands inflation leads to searching for new tastes, sales channels and contact formats that expand the product range and diversify the beer market, but do not imply a substantial volume increase. Let us enumerate and further discuss the ten trends of the beer market we can see in 2015-2017 as well as the major event of 2017.
Beer market of Ukraine 2017In the first half of 2017, the Ukrainian beer market goes on decreasing slowly. Yet, the companies manage to compensate their lost volumes by raising prices and improving the sales structures. This results in the mid price market segment reduction while the sales of premium brands are rising. These processes are connected to position strengthening of companies Carlsberg Group and Oasis and the market share reduction of Obolon. Most of the novelties by the market leaders belong to craft or hard lemon categories.
Beer market of Russia 2016: PET goes to draftThe beer market of Russia was warmed up by the hot summer, but the preparation for large volume PET prohibition has already impacted it negatively. The year was successful for Efes, MBC and regional producers; Carlsberg’s positions were virtually stable but AB InBev and Heineken lost a part of market share having focused on the sales profitability. The dynamics of big brands was determined by how much the companies were willing to keep the prices down or by their promotional activity. In this context the economy segment of the beer market and sales of inexpensive draft beer were increasing. The premium segment started shrinking due to license brands migrating to the mainstream segment.
Beer market of Vietnam: “Young tiger”Vietnam is one of the few big beer markets that continue to grow steadily. The beer popularity results from its low price, street consumption culture, and social motives. The outlooks of beer market as well as the Vietnamese economy inspire optimism, though the country is heavily dependent on export of goods. The state regulation can be called liberal, but the key risk for brewers is harbored in intensive rising of excise. Within TOP-4 there are two leaders, Sabeco and Heineken that grow at the fastest rates. The first company effectively employs its capacities, the second one focuses on marketing technologies. Almost 80% of the market belongs to century-old brands, yet the middle class and the youth are shifting their interest toward international premium that is growing taking share from the mainstream.
In view of increased competition with private beer factories, the share of beer production by monasteries started reducing, and then monasteries stopped brewing beer at all. And if by the XX century abbey breweries worked at some places, Bolsheviks stopped their work.
As far as we know, today beer isn't made anywhere in the world on the territory of Orthodox organizations. This occurs despite the fact that there are more than 30 Orthodox churches – some connected by a uniform center, as well as autonomous or self-governed, and heads of these churches can look differently at brewing at monasteries. After all we found mentioning of "Orthodox" beer, but in this case connection with the monastery also doesn’t look very obvious.
Private Finnish company Saimaan Juomatehdas bottles Luostari Dubbel beer. According to the company, "This beer, crafted in collaboration with the Valamo Monastery, is the only Orthodox monastery beer in the world". As seen from its name, this beer for its characteristics belongs to Belgian abbey sorts. Besides Luostari Dubbel this Finnish producer bottles some other drinks without the monastery attributes, for example, organic and craft beer as well as ciders.
Of course, this case is an exception and an original marketing mix for the local market. Greece, Bulgaria, Serbia, Ukraine, Belarus, Armenia, Georgia and Russia – countries with a large Orthodox population (there are about 300 million Orthodox Christians all over the world) could become serious regions of sale for abbey and "Orthodox" beer. But for this purpose there are no real prerequisites as the largest Orthodox churches of the world usually stop attempts of the third-party organizations to use their name, attributes and images for commercial activity.
Also, despite historical background, organization of their own beer production seems unrealistic as representatives of Orthodox churches speak about the harm of alcohol and the need to reduce its consumption more often and sharper than, for example, Catholics. For these reasons breweries very seldom mention monastic and Orthodox subjects in beer production.
As far as we know, in Russia only two brands of "abbey" beer are issued today. One of them is produced in the village of Kalinkino, Kemerovo region and nothing except the name causes additional associations of this beer with the monastery.
A characteristic story is connected with another sort. Vyatich Monastryskoye beer, according to the company’s data, “is brewed for Orthodox holidays on water from the consecrated source…” In 2010 as advertising of this beer posters with an image of a bottle in front of the Dormition Cathedral of Trifonov Monastery and a title "Divine beer" were used. But, according to the management of the company, the Vyatka (Kirov) diocese "didn't understand this creative idea and appealed to take the posters away". Besides, the Vyatka diocese recommended the creative brewers in the future "Not to say the name of the Lord, your God, in vain". Because of this discussion, probably, this new sort of beer was remembered by the residents of Kirov, but actions for further advance of the brand are complicated.
In Ukraine a significant share in the market of cheap beer is taken by a subbrand “Monastyrskoe” of the brand “Rogan” which belongs to AB InBev portfolio of local brands. However marketing specialists of the company for ethical or other reasons didn't make any attempts to develop the subject of abbey beer in advertising of this sort, and placed it in such price segment where it can do without advertising at all. Perhaps for the same reasons a corresponding image disappeared from a label of half-forgotten sort “Veselyi monakh”/ “The cheerful monk”.